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  1. #1
    Join Date
    Nov 2010
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    91

    Default Recourse or No-Recourse Loan on Manufactured Home

    My question involves a foreclosure in the State of: CA
    My manufactured home is located in a park where I pay monthly lot rent. The loan papers say that if I default on the loan I can be held liable for selling cost, storage, selling expenses etc. Is this was is considered a recourse loan? If the manufactured home is repossessed can the lended come after me for expenses and any deficiency of the loan after they sell it?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Recourse or No-Recourse Loan on Manufactured Home

    The expenses associated with your abandoning your home are not part of a "deficiency" resulting from the home selling for less than you owe; but normally those expenses would be paid first out of the proceeds from the sale of your home, which would ordinarily remove "reasonable and necessary expenses incurred for preparing for and conducting the sale and, if the foreclosing creditor has obtained possession of the collateral prior to the disposition, the reasonable and necessary expenses for the retaking and holding of the collateral and to the extent provided for in the agreement and not prohibited by law" as an issue. See California Health & Safety Code, Sec. 18037.5. See further:
    Quote Quoting California Health & Safety Code, Sec. 18038.7.
    No deficiency judgment shall lie in any event, after the sale of any manufactured home, mobilehome, commercial coach, truck camper, or floating home subject to registration pursuant to this part, for failure of the purchaser to complete his or her sale contract given to the seller to secure payment of the balance of the purchase price of the manufactured home, mobilehome, commercial coach, truck camper, or floating home. This section shall not apply in the event there is substantial damage to the manufactured home, mobilehome, commercial coach, truck camper, or floating home other than wear and tear from normal usage.

    In addition, no deficiency judgment shall lie in any event under a deed of trust or mortgage or note on a floating home serving as a dwelling for not more than four families given to a lender to secure payment of a loan which was in fact used to pay for all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser.

  3. #3
    Join Date
    Nov 2010
    Posts
    91

    Default Re: Recourse or No-Recourse Loan on Manufactured Home

    If the lender repossess the manufactured home are they resposible for the monthly lot rent from that point forward?

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Recourse or No-Recourse Loan on Manufactured Home

    No, they do not.

  5. #5
    Join Date
    Nov 2010
    Posts
    91

    Default Re: Recourse or No-Recourse Loan on Manufactured Home

    So when the lender repossess the home who is responsible for the monthly lot rent where the manufactured home sits. I know the lender would not move it they would leave it where it is.

  6. #6
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Recourse or No-Recourse Loan on Manufactured Home

    If you have a lease, you're still responsible. It matters not that you no longer own the stuff that's sitting on it. If you don't pay, the lot owner will try various recourses. Of course, attaching the home is probably one of his options, in that case the bank may decide it's worth their interest to pay, but unless they do, that doesn't change your obligation to do what you promised in the contract to do.

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